For a company or an organization, it is important to demonstrate their efficacy which is demonstrated through the quality of performance and organization’s future goals. Employee’s performance and the overall performance of the company thus are monitored. The function of staff performance appraisal by the human resource department is essential in managing the performance of the members of the organization; which is achieved through performance management processes. There is a direct relation between staff performance ability of the organization to meet its goals (Selden & Sowa, 2011).
The chosen performance management systems should be one which is free of any subjectivity or bias and is based on empirical and theoretical evidence (Prowse & Prowse, 2009). This allows the managers to not only set goals and expectation with their employees but also to evaluate their performance whose results determine if they are to be rewarded or if there is a need for a corrective measure and intervention. Thus the ubiquitous purpose of performance appraisals is to set a concrete and apparent expectation of what is expected from an employee.